Optus revenue and staff numbers down

OPTUS has posted further revenue falls in the third quarter of its fiscal year, a result described as disappointing by analysts.

Australia's second largest telco made a net profit of $160 million in the three months to December 31, down from $177 million in the prior corresponding period. The result includes a $30 million one-off charge from restructuring during the quarter, the company's parent Singapore Telecommunications said today.

The restructure included 305 job cuts in the three months to December, trimming Optus' workforce to 8764. The company has cut its workforce by 962, or 9.9 per cent, in the last 12 months, company accounts show.

Excluding the impact of restructure costs, Optus made an underlying net profit of $181 million in the three months to December, up from $177 million in the prior corresponding period. Revenue fell 5.7 per cent from the previous corresponding period to $2.28 billion, and that followed a 4.2 per cent revenue decline in the second quarter.

"The Optus result was disappointing, as revenue decline accelerated in the third quarter", Morningstar analyst Michael Wu said. "I think it has to do with the competitive pressure in the marketplace."

"All in all, it was below expectations." SingTel said revenue from Australia in the full year to March 30 was expected to decline at the "mid-single digit level", while earnings before interest, tax, depreciation and amortisation would remain stable. The guidance was unchanged from what the company forecast in November.

At December 31, 2012, Optus had 9.565 million mobile subscribers, up 21,000 from 9.544 million at September 30.

Mr Wu said Optus had added 53,000 mobile customers in the half, but Telstra had continued to take market share with 600,000 customer additions in the same period.

At 12.32pm AEDT, shares in SingTel were down four cents at $2.77 in local trade. The stock is listed in both Australia and Singapore.

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